Anoka City Council

January 27, 2025 (Worksession) Page 1 of 19 WORKSESSION OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL WORKSESSION ROOM JANUARY 27, 2025 1. CALL TO ORDER Mayor Skogquist called the worksession meeting to order at 5:04 p.m. 2. ROLL CALL Present at roll call: Mayor Skogquist, Councilmembers Campbell, Rostad, Scott, and Weaver. Staff present: City Manager Greg Lee; Finance Director Brenda Springer; HRA Executive Director Darin Berger; Police Chief Eric Peterson; Senior City Planner Clark Palmer; Public Works Director Mark Anderson; Community Development Director Doug Borglund; Utility Director Del Vancura; Liquor Store Manager Kevin Morelli and City Attorney Scott Baumgartner. Absent: None. 3. COUNCIL BUSINESS and/or DISCUSSION ITEMS 3.1 Discussion; Historic Rum River District (HRRD) Parking Ramp – Possible Modifications. City Manager Greg Lee shared that staff is seeking direction regarding possible modifications to the HRRD parking ramp that included automatic locking doors and fire alarms on the second and third level. He shared continuing concerns with individuals using the stairwells as sleeping quarters and restroom facilities. He said while no loitering signage has been posted the concerns still continue, mainly during the winter months, and that staff has worked to address the concerns such as locking the lower doors from 2:00 a.m. to 6:00 a.m. but noted the individuals after 6:00 a.m. while waiting for Anoka County Government Center to open at 8:00 a.m.. He said the $26,000 cost may assist with decreasing police officer monitoring. Public Works Director Mark Anderson further shared about the parking ramp constructed in 2006 with a total capacity of 269 parking spaces and that the City has hosted hundreds of special events and activities in the ramp which will only increase from the various events in downtown. He said additional automatic locking doors and fire alarm implementation could help address individuals using the ramp for extended occupancy such as loitering, vandalism, littering, trespassing, sleeping, and use of the stairwells as a restroom. These activities resulted in several code violations, none of which the occupants can/are being January 27, 2025 (Worksession) Page 2 of 19 held accountable due to individual personnel factors. After trying several options over the last several years to address this and similar issues, the option to lock the lower-level doors of the HRRD Ramp stairwells but the option was eventually deemed ineffective after the first several weeks. The occupants found that they could go up the second level of the ramp and access the stairwells and return down to the lower level. To counter this action, the doors of stair cores A and B on levels 2 and 3 of the HRRD Parking Ramp can be also modified to include “auto locking” hardware technology; the same technology as what was previously installed on the Level 1 stair core doors in 2024. If installed, all doors would be controlled by the same previously installed controller, and it is presumed that all doors will use the same schedule for locking of doors. With the automatic locking of the doors on Level 1, there were no concerns or issues related to the emergency exiting of the ramp based on fire code. However, the locking of the doors on Levels 2 and 3 would require an over-ride system that would unlock the doors in the event of fire or an emergency. This would be accomplished by the installation of emergency push-button switches located within an access box similar to, but smaller than a fire extinguisher cabinet. When this emergency push-button switch is depressed, the alarm system would be activated, changing the door system to emergency status and all the stair core doors will automatically unlock. This system will provide the necessary egress path to safely exit the parking ramp in the event of an emergency. Additional signage will also be required in the ramp to inform the public that doors will be locked at predetermined times and that the doors will automatically unlock should the emergency system be activated. The total estimated cost of implementing this next step option is approximately $26,000 that would be derived from the City’s Fund Balance Account. Public Safety Services has been consulted to get their input on this possible next step option and the Fire Chief has expressed concerns and does not recommend this change to the HRRD ramp due to safety and liability concerns. The Police Chief and Captain have indicated the since 2015, there has been over 1,000 Police calls for service to the HRRD ramp. Most of the calls for service include loitering, vandalism, littering and trespassing during the overnight hours. Locking the stairwell access would reduce police calls for service to the HRRD ramp. Staff is looking for direction from the Council as to whether to move forward with adding locks to the stairwell doors on Levels 2 and 3 of the HRRD ramp or should other solutions be sought. New access to the ramp from Golf Street Access to the HRRD ramp can be difficult during certain times and particularly during special events in the downtown area. To relieve this access difficulty, we have discussed the addition of a third vehicle ingress/egress at the ramp. There are two locations that could accommodate ingress/egress adjacent to the northeast corner of the ramp. The first ingress/egress location would be at the east side of the ramp aligned with Golf Street. This location benefits from having good alignment with Golf Street which will make this ingress/egress intuitive. The second location would be on the north side of the ramp near the east end of the ramp. This location would require traveling on a road/driveway from Van Buren Street to the north side of the ramp. This would have an impact on the future development projects on Van Buren Street by reducing the amount of taxable land. New January 27, 2025 (Worksession) Page 3 of 19 Restroom Facility Staff has had several discussions regarding restroom locations to serve the Veterans Memorial Park area near Second Avenue and Van Buren Street. In addition, The COA is in the planning and funding stage of the Rum River dam modification/river recreation project. This will likely change several of the features and adjacencies in the Veterans Memorial Park area. While these discussions and locations are very important and will continue, this retro-fit bathroom discussion is specific to the conversion of the ramp snow dump into two year-round America Disable Act (ADA) bathrooms. This proposal would be to retro-fit the existing snow dump at the northwest corner of the ramp into new ADA restrooms. This location would provide year-round, ADA bathrooms very near the Veterans Memorial Park. This location would require complete modification of the snow dump and the installation of utilities for the new bathrooms. He said Council should be aware that construction of stand-alone restroom facilities will likely be part of the larger conversations regarding the Social District, the Veterans Memorial Park and the future development of the vacant properties in the NCBD area then added the Pay to Park topic is new to the City but has been a national parking solution for decades. This is an introduction to paid parking concept in the City and if there is desire by Council to implement this service, the topic should be brought back to a future worksession. Park Mobile is an innovator and leader in the Pay to Park industry. We have been in discussion with Park Mobile for some time regarding their technology. Park Mobile presently has over 65 million users in the USA and they are growing at a rate of 1 million users every 30-40 days. The ramp in the City will provide a great discussion and a starting point for our conversation regarding Pay to Park. Pending Council direction on this subject, staff would have several planning meetings with Park Mobile to identify a scope of work for the project. This location and discussion will require great consideration, many conversations, hours of planning to develop a concept and plan. He shared the benefits that Pay to Park would bring in detail then reviewed the addition of a fourth level and financial impacts. He stated staff was seeking Council direction on the additional automatic locking doors and fire alarm to the HRRD parking ramp. Police Chief Eric Peterson shared that since 2019 they have worked to address individuals in the ramp, adding they have had 928 calls to one location which is excessive. He said they tried the door locking method and said while it worked in the beginning it unfortunately reverted. He said homelessness is certainly a concern and that the department has received 444 calls for one individual and was looking for ways to address the concern outside of police intervention which included Anoka County and social workers but that they needed other tools. Mayor Skogquist asked if all complaints were received via 911 calls as this was the best way to contact the Police Department and be properly tracked. Chief Peterson responded predominately calls were not received via 911 but usually by contacting various staff which was problematic. January 27, 2025 (Worksession) Page 4 of 19 Mayor Skogquist asked how the locking system would work. Public Works Director Mark Anderson explained the lock box over the alarm which would be broken in the event of a breach. Councilmember Scott referred to the skyways in other cities’ downtown areas where this activity occurs and spoke about the lockable doors used after a certain time and believed this option could work here. He explained the outreach used for temporary housing options and stressed the importance of being compassionate but firm to hopefully result in a clean and safe community. He said we need to address the urinating indoors and said with the social district there may be a need to construct public restrooms as well. Mr. Lee said staff did include public restrooms in the 2025 CIP but it was moved to 2028 at an estimate of $350,000. Chief Peterson said staff reached out to other cities to see how they address this issue and learned most cities dealt with it hands off but noted Anoka is unique in that many calls are being generated by one individual and that we need to identify additional tools to get this individual to move along which takes a lot of time and clinical intervention. Councilmember Scott asked how often the department partnered with a social worker and if there is an offering of alternative housing at 2:00 a.m. Chief Peterson said the City does have a shelter but that many are waiting for placement. Captain Youngquist Stepping Stone is a good partner and can usually offer emergency beds for law enforcement needs but noted it is not as often now. He said because of the government center in the City individuals will wait nearby until they can access the building. Mr. Nickelson (not signed in) echoed comments that we can’t force people to accept the resources offered but noted the need to have the courts work with them as well. Councilmember Weaver explained how people don’t want to call 911 for these types of calls but said this is a real concern then asked further about the costs of the locks, adding each day Public Works staff works to pressure wash human waste, trash, and other debris from the ramp at a cost of $265 a day which takes away from other necessary duties. He said it costs over $73,000 a year for this work which could be used in much better ways, adding the concerns are not even addressed over the weekends. He said the public shouldn’t have to walk through urine to access their cars then shared photos of people sleeping under the stairwells and the continuing concerns about possible assaults. January 27, 2025 (Worksession) Page 5 of 19 Captain Andy Youngquist spoke about the importance of documentation when these incidents occur and to do so by calling 911. Mr. Lee added the annual cost for clean-up does not take into account the officers’ time, noting one individual actually assaulted an officer which is truly a concern. An audience member asked about the lock system and how the Fire Chief was not supportive because of safety concerns and the need for a cost benefit analysis, adding the City should fast track the restroom discussion to fully address this concern as this is an ongoing concern for restaurant owners. Councilmember Scott stressed the need to be firm but compassionate, adding if the glass is broken over the locks it’s in an enclosed City facility and likely won’t happen every single day and be similar to the restrooms at Aikin Park that are locked over the winter. He said it is still worth locking even if the lock is broken occasionally. Mayor Skogquist supported the idea as well as public restrooms by the Dam or snow dump area, to deal with staffing, and if there is a broken lock each day, how we would address it. Councilmember Weaver noted that cameras will help identify who is breaking the locks. Councilmember Scott suggested proceeding with the plan and then checking in after six months regarding the progress, adding this should free up staff for better use of their time for other activities. Chief Peterson explained that prior to the one individual finding the ramp they utilized the sidewalk and noted that behavior will likely start occurring again and could be a different concern. Mayor Skogquist asked for options to choose from for the public restrooms that would be nice, lasting, and easy to maintain. Council consensus was to move forward with locks and alarms on the 2nd and 3rd levels of the parking ramp and move forward with constructing restrooms. 3.2 Discussion; City-Owned Property Review. Councilmember Weaver referred to K-9 Bravo’s passing earlier today and that based on the numerous awards he earned suggested renaming Brisbin Street Park to Bravo Park to honor his memory. He said the concept should be shared with the Park Board and could possibly include a dog park too. January 27, 2025 (Worksession) Page 6 of 19 Mayor Skogquist agreed the concept should be shared with the Park Board in conjunction with the current park naming policy and request their recommendation. Community Development Director Doug Borglund shared a background report stating that staff will be sharing data on several City-owned properties that included the River Avenue lot, Highland Park property west of the golf course, multiple parcels in the Transit Oriented Development (TOD), 7th Avenue and East Main Street, 2nd Avenue and Van Buren, Bunker Lake Boulevard and 7th Avenue, and others, and will be seeking Council direction. River Avenue HRA Executive Director Darin Berger shared this lot was a vacant lot on River Avenue and Madison Street listed in September for the construction of a single family home with 10-year rental restrictions but explained due to the Council vote of 3-2 and the need for a 4/5 vote staff is looking for direction to clarify criteria to make the selection of the buyer less subjective if the lot were to be re-listed. Mayor Skogquist said since we already have people interested, we shouldn’t need a realtor but said we need to be clear on our expectations for a minimum $200,000 and the need to provide the best and final proposal for a decision. Councilmember Weaver said we had a good discussion on this lot before but had a higher bidder but didn’t like the rendering so he returned with a replacement rendering and said this time we should approve the rendering and then let the developers make their bid. Councilmember Scott said he was uncomfortable between the first and second reading when the other bidder came back with a higher bid and suggested a sealed bid process next time. Mr. Berger agreed, adding when the higher bid was submitted, he felt Council needed to hear the offer and make the decision instead of leaving that to staff. Councilmember Weaver referred to the dual agency that occurred last time and how he didn’t feel that was fully appropriate then added the rendering first ensures the concept meets our approval, and then a price is submitted as the next step, adding this removes the randomness from the process. Councilmember Campbell asked if we can do a blind bid as this would be a cleaner process, adding the rendering will have already been approved. Councilmember Rostad confirmed the rendering just needs to be a feasible design. Mayor Skogquist suggested the criteria include a rendering, be above $200,000, and constructed within two years, adding he would be fine keeping the names January 27, 2025 (Worksession) Page 7 of 19 separate from the renderings. Mr. Berger said last time there were cover letters and agreed this would be better then asked for this site does staff contact the top three or top two bidders. Mayor Skogquist suggested posting the process online so others were aware but that the three earlier bidders should be sent something specific. Councilmember Campbell stressed the need to be clear with the criteria and that the highest bid has to be met. Mr. Berger reviewed possible other criteria as part of the purchase agreement and lot development guidelines such as exterior finish materials, garage placement, maximize use, and others. Green Haven Redevelopment Area Mr. Borglund reviewed the Green Haven 2012 adopted redevelopment plan that included the purchase of over 30 properties for either demolition or relocation, including making way for the new parkway. He reviewed the golf course review and feasibility study for a driving range and purchasing neighboring property for two new holes and other alterations, Assistant City Engineer Ben Nelson shared about the sanitary sewer and water services for development north of Garfield Street installed in 2021, Highland Park existing utilities removal cost estimate is $125,000, and possible future Garfield Street/Wingfield Avenue changes. Mr. Lee stated once Buldoc vacates this will not be a public street but just emergency access sometime around July. Councilmember Scott asked if the street could be retained for golf carts or ATVs if licensed. Mr. Lee said this would be more of a trailway head at 10 feet wide. Councilmember Weaver said as Buldoc and Garfield goes away should we repurpose the Buldoc office building for use by the golf course for a snack shop, storing beer, or other use. Mayor Skogquist agreed there is no need to demolish the building right away and should try to use it for other things, adding there is no sewer/water. Mr. Lee said the site has value to the golf course for many uses and that staff is looking to relocate and stay until Council directs otherwise. Finance Director Brenda Springer said the required decertification date is 2040, the current debt is $9,852,600, and assets are land held for resale appraised in 2021 of $3,293,000 so by developing the Greens this would give us enough TIF to January 27, 2025 (Worksession) Page 8 of 19 pay off the debt in the district. She shared further about the financial and TIF perspective and how this will actually be a wash if done. Mr. Borglund said there is strong development interest from MI Homes for homes in the $600,000 range then outlined Pratt Homes, Hanson Builders, and Pulte Homes are interested as well. He outlined possible next steps that included appraising the property, selecting a developer, and entering into a purchase agreement then asked for staff direction. Councilmember Weaver said he felt Pratt would build exceptional homes in this area and felt this was a life cycle housing opportunity that would bring a lot of energy to this portion of the City. He noted there were not many chances to build a golf course community in the City. Council direction was to obtain an appraisal first then direct staff to talk with each group to see if their interest continues then return to Council with an update. Anoka Station TOD Redevelopment Area Mr. Borglund shared the updated master plan from 2024 in detail then reviewed aspects regarding several parcels in the area, including the Miller building parcel area, 4th Avenue and Johnson Street, 5th Avenue and Johnson Street, parcel south of the ramp, 4th Avenue and Pleasant south of the railroad tracks. He reviewed the TIF map in the Commuter Rail Village (CRV). Ms. Springer reviewed the financial and TIF perspective of the area with a required decertification of 2039, the debt owed of $3,488,325, and the pay off debt and decertification early with assets land for resale of $580,6237. She said if done the City will raise the levy by $1 million but resident taxes will actually decrease so this is an opportunity. She spoke about additional TIF opportunities in how these parcels have been knocked down. Mr. Nelson shared about the engineering perspective of the 4th Avenue regional stormwater pond which will provide rate control and development required to construct. Mr. Borglund reviewed the recent development interests in the area that included MWF, Gramercy, PSD Land, Reuter Walton, Rush Creek, DR Horton, Lennar, MI Homes, and Pulte. He reviewed 4th and Johnson and with MWF for a four- story project of 131 units and a letter of intent (LOI) for $805,000 and the need for an appraisal but said this is likely their highest offer with the current market. He said Gramercy and North Shore were interested in a phased project and that Rush Creek reviewed the number of high density units, adding PSD was interested in medical, office, retail, apartments, and townhomes. He said DR Horton was interested in a market rate townhome community and Pulte shared a project at the Ford plant redevelopment in St. Paul that they believed could work January 27, 2025 (Worksession) Page 9 of 19 in Anoka. He said Lennar and Centra Homes were also interested in the 4.4-acre site for a for-sale opportunity with negotiable pricing, adding the Dehn Oil bull tank site was interested in selling the parcel for an estimated market value of $154,900 in 2025. Mr. Borglund spoke about 505 Johnson Street as another option for the future then outlined next steps that included zoning and comprehensive plan updates in February, appraisal of properties, and determining who the City wants to work with then creating a purchase agreement and close as well as address the existing building demolition. Mayor Skogquist said this is an interesting parcel because someone wants the former Hoffman building then asked about the 2.5-acre parcel on 4th and Johnson as possibly a priority to start. Councilmember Scott asked if that pushes the rest of the project and could the property be taken quicker. Councilmember Weaver said the Miller building is slated for what type of uses and asked if someone has an interest in the building but is not sure of the allowed uses. He said there is someone interested in senior living facility life cycle housing as well as high-end apartments at $200,000 a unit and asked if this is not the intended use do we then do the whole thing or portions. He said if the TOD wants to have a senior/memory care project as well as higher rate apartments, is that something we want to consider because if so, this developer is ready to move forward. Mr. Borglund reviewed the proposed uses that included high density, medium density, and townhomes. Councilmember Campbell said there is a huge need for senior housing and would support that concept, adding there are people in Anoka who want to stay in the City but we have no housing options for that need currently. Mayor Skogquist clarified this was not a developer that Councilmember Weaver had a financial relationship with. Councilmember Scott said he was not flexible on the greenway path and said other elements were important such as design changes that remove some of the important public amenities. He said it was important to consider train noise too in any development project. Councilmember Campbell referred to the redevelopment project around the Ford plant in St. Paul as this could be a mini-version of that project that included senior, townhome, and apartment housing as well as a river walk. Mayor Skogquist said he supported starting with the site and an LOI for high density residential to start. January 27, 2025 (Worksession) Page 10 of 19 Councilmember Weaver agreed, stating if the developer was interested in the Miller building site, he would like to start that discussion too. Mayor Skogquist but feel this is cart before the horse and would like to know what we want first before getting LOIs. Councilmember Weaver said this is just a point to start a discussion, adding if we remained with the TOD site for a long time, we could offer senior housing options right now. Mayor Skogquist said before that occurred, we should understand what they are proposing. Councilmember Scott asked how long we let the site remain. Mr. Borglund said we have a lot of interest from groups who mostly want high-density with medical and the redevelopment plan is a vision, adding there is room for a number of different products and developers within the entire site. Councilmember Scott shared comments that this could be a nice lynchpin and focal point should the Dam revitalization project come about and that after review with the Weekley and Gramercy developers if we aren’t flexible it may never be developed. Council consensus was to support an LOI for the southeast corner as it is the most easily developable corner. Councilmember Campbell said he felt the entire area would be more valuable once the Miller building was gone and that we should work to find someone to demolish it instead of the City. Councilmember Weaver noted this group has had an interest in this site for over a year and encouraged staff to contact them. Mayor Skogquist agreed, adding we need a good plan for the Miller building. Planning Commissioner Borgie Bonthuis commented about the interest so far in the entire site and if not yet should have some interest in the Miller building site and supported starting there as it might spur the rest, even if the overall master plan changes. Mayor Skogquist said he was a little uncomfortable working with one developer though without knowing more about what they want to do and suggested instead of a formal LOI when there are others interested, we should start a conversation with the developer first before directing staff to get a LOI. January 27, 2025 (Worksession) Page 11 of 19 Councilmember Weaver said if we don’t talk to them, we should, adding PSD has a great track record. He noted if we write an ordinance and that is not what they are interested in doing, the ordinance will have to be changed. Mr. Borglund stated the changes to the TOD won’t change the uses and the intent this evening is to show the Council the current interest in sites and gauge a plan and Council direction. Council recessed at 7:03PM and reconvened at 7:13PM. 7th Avenue and East Main Street Mr. Borglund reviewed the site’s details that included an 8,000-10,000 square foot City liquor store with a cannabis dispensary option that would achieve 7,800 square feet of taxable commercial space. He said the site would maintain access on East Main Street as far west as possible for the safety of the traveling public, maintain the site access on 7th Avenue as far as possible, and the west side is impacted by the required distances for cannabis uses. He reviewed the development layout analysis of Option 3 with a drive-thru, 80 stalls, and other elements then reviewed the marketing efforts in detail with not much interest in partnering because the upper level will be more difficult to lease. Ms. Springer reviewed the financial analysis of Option 3 which was the same as Option 1, and that the two-level building would have an excess TIF revenue of $1,215,846 and liquor revenue for 22 years of $5,884,509, help pay off the debt, and allow the liquor store operation to have the potential to earn a projected $5 million in gross sales. She said this district decertifies in 2024 and that the debt is $3,810,600 with current TIF revenue of $162,280 with land assets for resale of $1,768,500. Mayor Skogquist said he was not supportive of a one-story building as he wanted something more and said he was not sure who would want the back commercial pad on Monroe Street. He suggested interest in creating residential housing above with a three-story commercial and residential building then asked how many stalls were planned for the two-story building. Mr. Borglund said there was discussion about mixing both uses and said parking would be a challenge then approximated 80 stalls for the two-story concept. Councilmember Scott shared he would like to wait to see what the interest is for a two-story plan and said he still favored building toward the street with parking behind. He said he didn’t want a similar design to the Caribou Coffee site and wanted the flow of traffic for driving and pedestrians to be as convenient as possible. He said he would support a one-story eventually if necessary but noted this building will be here for many years then referred to the Dam and jail impacts and that we shouldn’t sell ourselves short and just construct a building. He said he supported a zero-lot line with development along Main Street. January 27, 2025 (Worksession) Page 12 of 19 Councilmember Rostad agreed with a front-facing building on Main and 7th then asked if staff had contacted Columbia Heights regarding their two-story mixed- use building. Mr. Borglund said that was staff’s intent once Council direction had been received mixing public use with partial residential. Councilmember Rostad said the neighborhood east of 7th and south of Main Street were concerned about traffic overall and safety perspective and stressed the need to maintain safe transit due to the number of students who use the area. Councilmember Scott said the current liquor store has an uncontrolled intersection so the need for control is important as well as access, adding with the liquor store struggling and being down to one location as well as other competition and size we don’t want to lose customers as they are difficult to regain. Mr. Lee noted the estimated $5,000,000 in gross liquor sales was more than the two stores combined, not to mention the revenue from potential cannabis sales. Mayor Skogquist supported discussions with Columbia Heights on their project and waiting. He supported a zero-lot line and one-story project at some point if necessary, adding he didn’t think we’ll be able to get all that commercial space. Councilmember Scott shared comments about those interested in tenants and traffic counts and marketing the rest of the property as a phased project possibly. Liquor Store Manager, Kevin Morelli, shared that based on projections they average 670 customers a day and there were approximately 14,000 cars a day in the area. A resident of Anoka (name not stated) commented that residential was not a realistic aspect, adding the configuring to the front makes sense. Councilmember Weaver asked about not putting the building on the corner and possibly allowing the purchase of one pad, adding we should be ready to consider that otherwise, the site may sit for a while. Councilmember Scott said he would entertain that concept but wondered if we do move the store from the corner if the loss in extra profit wouldn’t make up for the additional tax base from a different site plan. Councilmember Weaver said then we need to build the liquor store now and asked if the property is for sale or not, adding what happens with the HRA and if they foreclose in 2027 or take the property back. Councilmember Scott said putting in $5 million we should want to see what we can get out of it first. January 27, 2025 (Worksession) Page 13 of 19 Mayor Skogquist said he was not in favor of that plan as it made more sense to develop what we want and not just do what is being offered today. He stressed the need for input from Columbia Heights first and then wait a while longer, adding his support for a zero-lot line concept instead if needed Ms. Springer suggested including the current plan in the CIP. Mr. Borglund said staff will reach out to the current interested partners with the Council’s direction. 2nd Avenue and Harrison Street Mr. Borglund reviewed details of the sites which were zoned high density residential/institutional and in the North Central Business District (NCBD) overlay with a City master plan of NCBD. He said the site was 1.57 acres and was served by sewer and water with a LOI from Gramercy Development. He said the site was appraised for $1.6 million for a senior cooperative of 72 units overlooking the Rum River with two private parcels to be acquired as part of the project. He said because it was proposed as a senior cooperative there will be time for presales and the land could be tied up for two to three years and asked if Council was amenable to that concept. Mr. Nelson said all the site was treated by storm treatment on 2nd and Harrison to control the rate into the Rum River. Ms. Springer outlined the decertification of 2032, debt of $4.7 million for the parking ramp, current TIF revenue of $124,458, and assets land held for resale is $496,800. Mr. Borglund outlined next steps that included a purchase agreement, closing, presales, then noted the proposed jail expansion is impacting the site then discussed the Anoka Grain and Feed area possible concepts with the grain bins that included a 2021 task force vision and property value of $1,027,800. Ms. Springer noted this area was not in any TIF district. Mayor Skogquist said Gramercy did the pitch for the entire concept but felt this was more practicable to do right away, adding any work would require working with Mr. Boers who owns much of the property and may not be interested. He asked if that has been discussed and suggested downsizing to a smaller area. Mr. Borglund said staff hasn’t met with Mr. Boers yet. Councilmember Rostad asked about the timeline, adding the Mill Site work was incredible. Darrin and Emily Larson, 111 Harrison Street, said they had no specific timeline but wanted a project with the City and were exploring many January 27, 2025 (Worksession) Page 14 of 19 options but said they envisioned a two-phased project with the grain bins as phase one, adding the City seems to be moving in the right direction for a future project. Councilmember Rostad asked how many remain on the waiting for the golf course coop, adding that would be a good indicator for another project. Ron Prokott, 2701 Green Haven Drive, responded there were currently 38 on the waiting list. Councilmember Scott said this could be a great project and supported the vision, adding the Mill Site is used a lot and sparks interest for Anoka and that we need to take more advantage of Anoka being a river city as this is a unique aspect of Anoka. Councilmember Campbell said he supported the proposed bins. Council consensus was to continue working with the Larsons on a proposed project as well as Mr. Peterson with possibly a flexible land sale. 2nd Avenue and Van Buren Street Mr. Borglund reviewed the site details that included mixed use/institutional, NCBD overlay and master plan, two acres including the former library site which is currently leased to the Anoka County Historical Society, and that the property was not currently listed but Roers and Gaughn were both interested, one that included a LOI. Mr. Nelson reviewed the sewer/water and stormwater improvements from the 2006 NCBD storm improvements and said the development will be required to construct onsite improvements to meet the current rate control. Mr. Borglund outlined next steps that could include appraisals and an RFP process for the two interested parties. Ms. Larson asked if Site 1 was still a possibility for a hotel as some were leery of the property not being owner-occupied and the need to keep the value of their condos as high as possible. Mr. Borglund said a hotel could still be an option. Councilmember Scott confirmed the Historical Society could be incorporated in any new building. Mr. Lee noted this was one of the worst leases because of the 25-year term, adding the City seemed to care more about history than the County and that any discussions about the jail should include discussions about changing this lease as well. January 27, 2025 (Worksession) Page 15 of 19 Councilmember Rostad noted a hotel could go on the eastern portion too. Mayor Skogquist said it was good to have options and supported Roers but would consider a hotel with Gaughn, adding we still need to consider the Historical Society and suggested working this more about that feasibility. Councilmember Campbell noted that much depends on the jail expansion outcome. 7th Avenue and Bunker Lake Boulevard Mr. Borglund reviewed details of the site that included a highly visible location opposite of developing commercial in Andover that was near the ice arena and high school, was zoned B5 with 14 acres, and had signalized access. He reviewed development interests for a possible Kwik Trip, Jerry’s Grocery, liquor store, hotel, Transwestern Real Estate Services, and others. Mr. Nelson reviewed the sewer/water installed in 2014 and the 7th Avenue traffic signal system installed in 2022. Mr. Lee added seven years ago the County wasn’t going to allow us to pump stormwater onto the property but was now working in partnership to address this issue. Ms. Springer said this area was not in a TIF district so there was no debt and that all land sales could be used at the discretion of the Council. Mr. Borglund outlined next steps could include an agreement with the County for stormwater, neighborhood meeting regarding future access/road, and if the City would be a master developer or seek to obtain one as well as an appraisal of the property. Mr. Lee said it was important to obtain neighborhood feedback regarding access prior to any development for clearer direction. Councilmember Weaver shared that a Holiday gas station was going in across the street then talked about a possible gas station as prohibited use some time ago. Ms. Springer said she believed it was in conjunction with a grocer. Mayor Skogquist said it made sense to figure out a plan prior to involving developers and agreed with the general concept and supported the neighborhood meeting. Outlot A Eastview Meadows 2nd Addition Mr. Borglund shared the outlot details and that the cell tower lease expired January 2025. He spoke about the need to appraise the property and develop a January 27, 2025 (Worksession) Page 16 of 19 purchase agreement with Mark Strandland to demolish the cell tower and final plat the property as Eastview Meadows 3rd Addition for closing in May. Council supported this direction. Ferry and Pleasant Street Lots Mr. Borglund shared about the site in detail and the future Ferry Street/Highway 47 site access limitations, pedestrian trail, and the development interest from Scooter’s Coffee which was not the best fit. He shared comparisons of the lots sold in the last few years and next steps in Option 1 to amend to commercial, Option 2 to lease as LDR and sell the lots to recover the investment, or Option 3 to hold until Highway 47 was reconstructed. Councilmember Weaver said he was interested in learning the Highway 47 overpass alignment first. Mr. Nelson said the alignment south of the railroad tracks was pretty well defined already. Mayor Skogquist said these are lots that have been held a long time and that staging will be needed to make these work, adding this still feels to be too much in transition and the houses off Ferry Street would be fine to wait for now. State Street Parcel Mr. Borglund reviewed the State Street parcel which fronts on the golf course as well as Highway 10 and was zoned R-2 with 1.05 acres. He said the primary access was from State Street and that water was stubbed in 2015 and sewer stubbed in 2023. He said currently no developer was interested in the site and the nearby billboard could possibly be used as a City electronic billboard in the future. Councilmember Campbell asked if the noise wall installed during the Highway 10 construction could be extended. Mr. Nelson said the noise wall would have to undergo an entirely new process as part of an additional study to be extended. Mayor Skogquist supported a City billboard for additional revenue. Thurston Avenue Lot Mr. Borglund said this lot was zoned M-2 Industrial, was 36,795 square feet, and had sewer and water available to the property. He said there was no development interest to date and the City has been leasing this parcel since 2008 to the adjacent business then asked about next steps such as appraisal, lease, and sale. Councilmember Scott suggested asking the adjacent business about their interest to purchase the site. January 27, 2025 (Worksession) Page 17 of 19 Councilmember Weaver said if the trailers and equipment can’t be stored, we could lose a business in Anoka as this is an industrial park area. Mayor Skogquist said we don’t allow outdoor storage anywhere else and that the appraisal should be the first step, adding he was not very supportive of outside storage especially when many others were interested in industrial lots. 7th Avenue and East Garfield Mr. Borglund said this site was considered for a possible site for Public Works many years ago and was 11 acres in size and zoned R-1 Low Density Residential at 11.71 acres. He said the existing 6-inch watermain to the State Hospital was from Garfield Street and located straight north of 6th Avenue with a regional pond designed for rate control and State deed restrictions on outdoor storage when sold to the City. Mayor Skogquist said this was a unique piece and he didn’t want to sell just to sell. Councilmember Rostad agreed then asked what we could even use this parcel for as it was an odd location. Council consensus was to reconsider this site again in the future. Tire Zoo Remnant Parcel Mr. Borglund explained the site was .76 acres and received the City’s MN Freight match of $209,470. He said this was a mixed-use site with residual value of $199,000, had access to Church Street, was subject to replat, and that next steps included replat, appraisal, or market. Mayor Skogquist asked if sold, do the funds go back to pay funds borrowed and if surrounded by two sides on a City park, would it be fine not marketing and use this flexible parking space. Mr. Nelson said the City has already received the local match. Councilmember Scott noted not there is not much ingress/egress for this site with the median. Wright Tire Remnant Parcel Mr. Nelson said this site was.98 acres, had a City MN Freight Match of $308,000, had 2021 residual value of $510,000, and could be redeveloped if cleaned up. He said the existing TH10 MnDOT right-of-way will need vacation which could take 18 months to five years but could be moved sooner if a priority. He said access would be Fairoak Avenue and the electric transformer was onsite in the southwest January 27, 2025 (Worksession) Page 18 of 19 corner. He said next steps included site clean-up from the tanks, release and conveyance of roadways, and the right-of-way. Mayor Skogquist said with current demand we could market this site quite easily once completed. Sign Station Remnant Parcel Mr. Nelson said this site was .08 acres and received LRIP funds for property acquisition, adding the parcel must be used for a public purpose for 37.5 years. Council consensus was no direction at this time for this site. Former Vineyard Remnant Parcel Mr. Borglund said this total site was 1.20 acres with a RALF loan amount of $1,368,284, 2024 and current appraisal of $660,000. He said the site was guided commercial but zoned general industrial and could be listed with a broker or the City purchases for the appraised value but noted it must be used for a public purpose. He referred to the transfer of right-of-way and platting which must occur before considering either option. Mr. Lee said staff believed this site could be a liquor store location but determined it was too close to Coborn’s and that access was not easy. Council consensus was to list the site. Restaurant Pad – On or Off the Table Councilmember Weaver said this area was needed for parking. Mayor Skogquist agreed this should continue to be a public use, that access to the Dam was important, and it should remain as parking. Council thanked staff for all the work. 4. OTHER BUSINESS Mayor Skogquist referred to the current Council vacancy appointment process and wanted to see if there could be a discussion about the process that included special elections or a special appointment process through the Charter Commission and suggested a possible worksession item. Mr. Lee clarified if the intent was to invite the Charter Commission to any worksession. Mayor Skogquist suggested Council review anything first before including the Charter Commission. January 27, 2025 (Worksession) Page 19 of 19 Mayor Skogquist referred to the current contract for services for City Attorney and suggested regular policy review of contracts for services based on some established threshold. Councilmember Campbell suggested including a timeframe around such review. Mr. Lee said staff will identify all contracts first then present, adding staff currently reviews all contracts every two years and this review could fit in well. Mayor Skogquist noted the City of Ramsey has signage for land use applications and suggested Anoka use something similar going forward. Mr. Lee said larger developments and signage with lighting were being used where possible. Councilmember Rostad asked for an update on the status of the consent decree. Mr. Lee said staff will provide an update after review with the City Attorney. 5. ADJOURNMENT Motion by Councilmember Scott, seconded by Councilmember Rostad to adjourn the Worksession at 9:04 p.m. Motion carried. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk